Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Trader says Bitcoin on CUSP to break out from Beerarish market structure, sketches path to new multi-month high

2025-05-09

Can Solana crack the barrier of $ 170? Yes – 3 reasons why

2025-05-09

Genius act stalls in the Senate, Wetgevers Eye New Proposal next week

2025-05-09
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Superstate is spreading to Tokenized shares; Sol -Strategies to mention first

    2025-05-09

    What are Babydoge -Properties?

    2025-05-09

    Vietnam launches his first blockchain network from home -grown: Details

    2025-05-09

    Crypto -Developer activities returns to the level of 2018, Ethereum retains a significant part of the innovation

    2025-05-09

    Securitize is at the top of the list, tradable, ONDO, paxos and other dominant players

    2025-05-08
  • NFT

    Drink-to-earn? A new sparkling water comes with an NFT and points

    2025-05-08

    Cobie says we will return if someone buys this $ 20 million NFT

    2025-05-08

    Edge Matrix, Colabs Partner to strengthen NFT -Makers

    2025-05-08

    Argentinian football club Partners with StepN to launch digital sneakers

    2025-05-05

    Pudgy Penguins #6873 Leads with Top NFT -sale worth $ 360.2k

    2025-05-04
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Trader says Bitcoin on CUSP to break out from Beerarish market structure, sketches path to new multi-month high

    2025-05-09

    XRP – Price breaks through obstacles – could a bullish peak follow?

    2025-05-09

    Bitcoin whales and sharks stored $ 7,890,599,380 in BTC in just six weeks, says Analytics platform – this is what it means

    2025-05-09

    BNB Price objectives $ 650 in the midst of renewed market optimism

    2025-05-09

    Trump Crypto Advisor picks up $ 300,000,000 for the new Bitcoin (BTC) investment firm called Nakamoto: Report

    2025-05-08
  • Learn

    What Is a Layer-1 (L1) Blockchain?

    2025-05-03

    What is a Layer-2 (L2) Blockchain Network Solution?

    2025-05-02

    What Is a Layer-0 Protocol?

    2025-05-02

    What Are Utility Tokens? Types, Roles, Examples

    2025-04-17

    Real-World-Assets in Crypto, Explained

    2025-04-16
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Bitcoin»Bitcoin – Here’s Why This Analyst Expects the ‘Overheated Market’ to Correct
Bitcoin

Bitcoin – Here’s Why This Analyst Expects the ‘Overheated Market’ to Correct

2025-01-12No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email
  • The sentiment index of 69 indicates optimism, but caution is advised
  • Historical patterns pointed to correction risks near market highs

As the market enters 2025, investor sentiment is at a peak, fueled by growing optimism and a renewed sense of opportunity. While enthusiasm is growing, it remains well below the extreme levels seen during previous market booms. Nevertheless, experts warn of the risk of a correction, especially in Bitcoin [BTC] and other major cryptos, is increasing as the market continues to gain momentum.

With this in mind, it is crucial that investors remain vigilant, keep a close eye on key indicators and be alert to early signals that could indicate a shift in market dynamics.

Fear and Greed Index – What Happens at 95?

Source: Binance Square

At the time of writing, the index stood at 69 – a strong sign of optimism, but still far from the red zone. Analysts believe that when the index hits 95, the market typically enters an overheating phase, characterized by speculative excesses and euphoria. Historically, this threshold has served as a warning signal, indicating that a correction or downturn could be imminent.

Such levels often precede changes in investor behavior, as cautious optimism gives way to unsustainable exuberance.

Key indicators to watch for a possible correction

As the market approaches overheated conditions, Adler noted several key indicators that could provide early warnings of a correction.

Sale of long-term holders

Historically, increased selling activity from long-term holders has signaled the onset of market corrections. December 2024 saw a slight increase in LTH profit-taking, echoing patterns observed before the 2021 and 2017 market peaks. A sharp increase in these sales could signal that sophisticated investors are pulling back ahead of a potential downturn, undermining market confidence.

See also  Bhutan bets on Bitcoin: Doubling salaries to combat Brainrain

BTC ETF outflows

After record inflows in late 2024, Bitcoin ETFs experienced modest outflows in early January 2025. This decline could indicate cooling sentiment among institutional investors – often a harbinger of reduced buying pressure.

MicroStrategy Stock Moves

As a gauge of institutional Bitcoin sentiment, MSTR stock serves as an important proxy. Any continued decline in stock performance, especially after strong demand in Q4 2024, could reflect waning interest in Bitcoin exposure among institutional investors. Such moves have previously coincided with market corrections.


Read Bitcoin’s [BTC] Price forecast 2025-26


Bitcoin – Historical Patterns and Price Analysis

Source:

The correlation between sentiment and price has historically been a reliable predictor of market cycles. At the time of writing, the NUPL-MVRV index appeared to be approaching the levels that previously indicated market peaks in 2017, 2021 and mid-2024.

These thresholds mark zones of increased risk, where corrections often follow overheated conditions.

bitcoinbitcoin

Source: TradingView

Similarly, Bitcoin’s RSI cooled to 46 on the daily chart after December’s overbought highs, signaling a possible shift toward consolidation or decline.

The price action around $95,000 reflects a critical resistance zone, as previous parabolic runs stalled after similar RSI declines. If momentum is not regained here, it could pave the way for a retracement to support levels around $88,000-$90,000, in line with broader profit-taking and declining ETF inflows.

Previous: Is Cardano in danger? Addressing the impact of profit taking on the ADA market

Next: Decentraland [MANA] vs FET – Active addresses, dev. activity, and more

Source link

Analyst Bitcoin Correct expects Heres market Overheated
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trader says Bitcoin on CUSP to break out from Beerarish market structure, sketches path to new multi-month high

2025-05-09

Taiwan warned of currency crisis – legislators penetrate Bitcoin as digital gold of the nation!

2025-05-09

Bitcoin again crosses $ 100k and the market asks- is the rally real this time?

2025-05-09

Bitcoin whales and sharks stored $ 7,890,599,380 in BTC in just six weeks, says Analytics platform – this is what it means

2025-05-09
Add A Comment

Comments are closed.

Top Posts

Yuga Labs-associated NFTs, token falls following SEC probe

2022-10-14

Will Tron see a 6% drop in prices over the next week

2023-09-05

HeLa Space revolutionizes on-chain asset management in partnership with the Aspis protocol

2025-01-10
Editors Picks

Bitcoin Price Indicates Possible Correction, But Can BTC Overcome This Hurdle?

2023-10-16

Top US Crypto Exchange Coinbase Embraces ‘International First Mentality,’ Says Company VP

2023-10-07

Solana’s Mimay Leads NFTs as Bitcoin and Crypto Markets Plummet

2024-08-05

Bitcoin acts with a discount for the past month, signaling of sales pressure – what this means

2025-02-01
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Trader says Bitcoin on CUSP to break out from Beerarish market structure, sketches path to new multi-month high

Can Solana crack the barrier of $ 170? Yes – 3 reasons why

Genius act stalls in the Senate, Wetgevers Eye New Proposal next week

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$102,815.672.25%
  • ethereumEthereum(ETH)$2,293.2514.09%
  • tetherTether USDt(USDT)$1.00-0.01%
  • rippleXRP(XRP)$2.354.93%
  • binancecoinBNB(BNB)$633.232.28%
  • solanaSolana(SOL)$169.476.87%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.2024797.81%
  • cardanoCardano(ADA)$0.786.98%
  • tronTRON(TRX)$0.2624674.82%
  • suiSui(SUI)$3.892.54%
  • chainlinkChainlink(LINK)$15.895.58%
  • avalanche-2Avalanche(AVAX)$22.978.83%
  • stellarStellar(XLM)$0.2950115.98%
  • shiba-inuShiba Inu(SHIB)$0.0000157.72%
  • hedera-hashgraphHedera(HBAR)$0.1986034.98%
  • hyperliquidHyperliquid(HYPE)$24.9013.91%
  • bitcoin-cashBitcoin Cash(BCH)$406.41-2.53%
  • the-open-networkToncoin(TON)$3.243.46%
  • unus-sed-leoUNUS SED LEO(LEO)$8.69-0.84%
  • litecoinLitecoin(LTC)$98.476.38%
  • polkadotPolkadot(DOT)$4.689.57%
  • moneroMonero(XMR)$300.641.63%
  • daiDai(DAI)$1.00-0.02%
  • bitget-tokenBitget Token(BGB)$4.472.09%
  • pepePepe(PEPE)$0.00001227.05%
  • piPi(PI)$0.7316.67%
  • ethena-usdeEthena USDe(USDE)$1.00-0.03%
  • uniswapUniswap(UNI)$6.2117.07%
  • bittensorBittensor(TAO)$427.044.68%
  • nearNEAR Protocol(NEAR)$2.8712.60%
  • aptosAptos(APT)$5.557.25%
  • okbOKB(OKB)$53.402.56%
  • ondo-financeOndo(ONDO)$1.017.22%
  • aaveAave(AAVE)$206.288.28%
  • ethereum-classicEthereum Classic(ETC)$18.978.50%
  • internet-computerInternet Computer(ICP)$5.328.29%
  • official-trumpOFFICIAL TRUMP(TRUMP)$13.9512.84%
  • kaspaKaspa(KAS)$0.1030797.27%
  • crypto-com-chainCronos(CRO)$0.1011945.93%
  • gatechain-tokenGateToken(GT)$21.851.25%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2510327.49%
  • mantleMantle(MNT)$0.773.92%
  • render-tokenRender(RENDER)$4.906.50%
  • vechainVeChain(VET)$0.0293359.39%
  • ethenaEthena(ENA)$0.36789719.05%
  • usd1World Liberty Financial USD(USD1)$1.000.13%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.8414.06%
  • filecoinFilecoin(FIL)$3.018.21%
  • algorandAlgorand(ALGO)$0.2322858.80%
  • bitcoinBitcoin(BTC)$102,815.672.25%
  • ethereumEthereum(ETH)$2,293.2514.09%
  • tetherTether USDt(USDT)$1.00-0.01%
  • rippleXRP(XRP)$2.354.93%
  • binancecoinBNB(BNB)$633.232.28%
  • solanaSolana(SOL)$169.476.87%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.2024797.81%
  • cardanoCardano(ADA)$0.786.98%
  • tronTRON(TRX)$0.2624674.82%
  • suiSui(SUI)$3.892.54%
  • chainlinkChainlink(LINK)$15.895.58%
  • avalanche-2Avalanche(AVAX)$22.978.83%
  • stellarStellar(XLM)$0.2950115.98%
  • shiba-inuShiba Inu(SHIB)$0.0000157.72%
  • hedera-hashgraphHedera(HBAR)$0.1986034.98%
  • hyperliquidHyperliquid(HYPE)$24.9013.91%
  • bitcoin-cashBitcoin Cash(BCH)$406.41-2.53%
  • the-open-networkToncoin(TON)$3.243.46%
  • unus-sed-leoUNUS SED LEO(LEO)$8.69-0.84%
  • litecoinLitecoin(LTC)$98.476.38%
  • polkadotPolkadot(DOT)$4.689.57%
  • moneroMonero(XMR)$300.641.63%
  • daiDai(DAI)$1.00-0.02%
  • bitget-tokenBitget Token(BGB)$4.472.09%
  • pepePepe(PEPE)$0.00001227.05%
  • piPi(PI)$0.7316.67%
  • ethena-usdeEthena USDe(USDE)$1.00-0.03%
  • uniswapUniswap(UNI)$6.2117.07%
  • bittensorBittensor(TAO)$427.044.68%
  • nearNEAR Protocol(NEAR)$2.8712.60%
  • aptosAptos(APT)$5.557.25%
  • okbOKB(OKB)$53.402.56%
  • ondo-financeOndo(ONDO)$1.017.22%
  • aaveAave(AAVE)$206.288.28%
  • ethereum-classicEthereum Classic(ETC)$18.978.50%
  • internet-computerInternet Computer(ICP)$5.328.29%
  • official-trumpOFFICIAL TRUMP(TRUMP)$13.9512.84%
  • kaspaKaspa(KAS)$0.1030797.27%
  • crypto-com-chainCronos(CRO)$0.1011945.93%
  • gatechain-tokenGateToken(GT)$21.851.25%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2510327.49%
  • mantleMantle(MNT)$0.773.92%
  • render-tokenRender(RENDER)$4.906.50%
  • vechainVeChain(VET)$0.0293359.39%
  • ethenaEthena(ENA)$0.36789719.05%
  • usd1World Liberty Financial USD(USD1)$1.000.13%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.8414.06%
  • filecoinFilecoin(FIL)$3.018.21%
  • algorandAlgorand(ALGO)$0.2322858.80%